Railway
The Industries (Development and Regulation) Act, which introduced industrial licensing in India, was first enacted in:
Answer (Detailed Solution Below)View answer ▾Hide ▴
Answer: Option A — 1951
Detailed Solution
The Industries (Development and Regulation) Act (IDRA) was enacted in 1951 to regulate the development of industries in line with the goals of planning. It came into force in May 1952.
Purpose of the Act:
- To implement the Industrial Policy Resolution of 1948.
- To direct industrial investment according to national priorities and plan targets.
- To prevent the concentration of economic power in a few hands.
- To promote balanced regional development.
Main features:
- Industries listed in the First Schedule required a licence from the government to set up new units, expand capacity or change location.
- The government could investigate the working of industries that were mismanaged or performing poorly.
- The government could take over the management of such industries in the public interest.
- Central Advisory Council and Development Councils were set up for various industries.
Licence Raj:
- Over time, the licensing system became very complex and was criticised for causing delays, corruption and inefficiency.
- This system came to be called the "licence-permit raj".
Liberalisation in 1991:
- The New Industrial Policy of 1991 abolished industrial licensing for most industries.
- Licensing is now required only for a few industries related to security, strategic concerns, hazardous chemicals and environment, such as defence equipment and certain chemicals.
Related policies:
- Industrial Policy Resolution, 1948: first industrial policy of independent India.
- Industrial Policy Resolution, 1956: divided industries into three schedules and gave the public sector a dominant role.
- Monopolies and Restrictive Trade Practices (MRTP) Act, 1969: aimed at preventing concentration of economic power; replaced by the Competition Act, 2002.
Present relevance:
The IDRA still exists, but its scope has been greatly reduced.
Why not the other options?
- ✗1948 is the year of the first Industrial Policy Resolution.
- ✗1956 is the year of the second Industrial Policy Resolution.
- ✗1969 is the year of the MRTP Act.
Quick tip
Remember: Industries (Development and Regulation) Act = 1951 (licensing); dismantled largely by the 1991 New Industrial Policy.
💬 Discussions on this question
Ask a doubt ›Still stuck on this question? Ask our faculty and fellow students — answers appear here.
Ask a doubtMore Industries & Transport in India Questions
View all ›- Q1.India's first nuclear power plant is:
- Q2.Which is the deepest landlocked and well-protected port in India?
- Q3.The East-West Corridor of the National Highways Development Project connects:
- Q4.India's longest rail-cum-road bridge, connecting Assam and Arunachal Pradesh over the Brahmaputra, is the:
- Q5.The Atal Tunnel, one of the world's longest highway tunnels above 10,000 feet, connects Manali with:
More General Knowledge Questions
- Q1.The techniques of Rasa and Bhava used in Indian classical dance trace their origin to which ancient text?Indian Dance Forms
- Q2.Lavani, Powada, Koli, Waghya Murali and Dhangari Gaja are folk dances of which state?Indian Dance Forms
- Q3.The one-act play associated with the Sattriya tradition of Assam is called:Indian Dance Forms
- Q4.Which dance form of Goa is known as the 'Warrior Dance'?Indian Dance Forms
- Q5.Manipuri dance is based on the Rasleela themes of:Indian Dance Forms
Industries & Transport in India — Preparation
This question tests your understanding of Industries & Transport in India, a key topic in the General Knowledge section. The detailed solution above uses a step-by-step approach to show the reasoning, and where available, a shortcut that helps you solve similar questions in under 90 seconds during the actual exam.
This topic covers India's major industries (iron and steel, textiles, cement, sugar, automobiles and information technology) and their locations, along with the transport network: railways, roads and national highways, ports, airports and waterways. Common questions ask where a steel plant is located and which country helped build it (Bhilai with the Soviet Union, Rourkela with Germany and Durgapur with Britain), which city is called the 'Manchester of India', and facts about major ports, railway zones and national highways. Practise the industries and transport questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.